Its Good, Y All is a Texas based company that operates a large chain of restaurants The following information is available for the company (in thousands) Required (a) Compute the companys inventory turnover ratio and age of inventory for 2007 through 2009 Beginning inventory for 2007 was $15,746,000 (b) Comment on the ratios computed in part (a) Are there any de iuml not nite trends in these ratios If so, are these trends favorable or unfavorable Explain (c) Why do decision makers pay close attention to the age of inventory statistic for companies in the restaurant industry 2007 2008 2009 Net Sales $400,577 $517,616 $640,898 Cost of Goods Sold 130,885 171,708 215,071 Net Income 33,943 46,652 57,497 23,192 28,426 41,989 Ending Inventory

Question: Its Good, Y All! is a Texas-based company that operates a large chain of restaurants. The following information is available for the company (in thousands).

It€™s Good, Y€™ All! is a Texas-based company that operates a large chain of restaurants. The following information is available for the company (in thousands).

Required:
(a) Compute the company€™s inventory turnover ratio and age of inventory for 2007 through 2009. Beginning inventory for 2007 was $15,746,000.
(b) Comment on the ratios computed in part (a). Are there any deï¬nite trends in these ratios? If so, are these trends favorable or unfavorable? Explain.
(c) Why do decision makers pay close attention to the age of inventory statistic for companies in the restaurant industry?

2007 2008 2009 Net Sales $400,577 $517,616 $640,898 Cost of Goods Sold 130,885 171,708 215,071 Net Income 33,943 46,652 57,497 23,192 28,426 41,989 Ending Inventory

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